Based in Burlington, Massachusetts, Keurig Dr Pepper Inc. (KDP) is a leading beverage and coffee company with a market cap of $46.6 billion. It offers a diverse range of hot and cold beverages and single-serve brewing systems through both at-home and away-from-home channels.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks, and Keurig Dr Pepper fits this criterion perfectly. Keurig Dr Pepper is renowned for its extensive portfolio of over 125 hot and cold beverages and its innovative single-serve brewing systems, making it a leader in the beverage industry, generating significant revenue from both beverage sales and Keurig machines.
However, the coffee and carbonated beverage giant is down 1.8% from its 52-week high of $35, achieved on June 4. Despite this, shares of KDP have surged 16.2% over the past three months, outperforming the broader Nasdaq Composite's ($NASX) 7.9% gains in the same period.
However, in the longer term, KDP is up 3.2% on a YTD basis, lagging behind the NASX's 17.8% gains. Shares of Keurig Dr Pepper have increased 8.3% over the past 52 weeks, compared to NASX's 31% return over the same time frame.
Meanwhile, KDP has been trading above its 50-day moving average since late March and has remained above its 200-day moving average since late April, indicating a bullish price trend.
Keurig Dr Pepper has underperformed over the past year due to declining sales in its coffee segment amid weak consumer spending, exacerbated by high inflation and increased interest rates impacting overall demand. Still, the stock rose 4.6% on Apr. 25 after its Q1 earnings report, which topped Wall Street expectations for both sales and profit. The company benefited from steady demand for its high-priced sodas and tonic water, as well as successful price increases that helped maintain margins amidst rising costs.
Also, its rival Monster Beverage Corporation (MNST) has underperformed compared to KDP. Shares of Monster Beverage have declined nearly 17.1% over the past 52 weeks and 15% on a YTD basis.
Given KDP's mixed price action, analysts remain cautiously optimistic about its prospects. With 15 analysts covering the stock, there is a consensus rating of "Moderate Buy," and it is currently trading slightly below the mean price target of $36.76.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
